Total Quality Management

Studies in Indian Place Names (UGC CARE Journal)
ISSN: 2394-3114 Vol-40, Special Issue-25

Two day International Conference on “Business Dynamics and
Sustainable Development”
Held on 2nd and 3rd March 2020
Organised by: The Department of Commerce and Management of
St. Joseph’s College (Autonomous), Bengaluru in collaboration with
the Department of Economics, St. Joseph’s College, Bengaluru,
Sunway College (Victoria University Australia Programmes) Malaysia
and ISDC UK
The Impact of Total Quality Management on Corporate Sustainability

Dr. S.C. B. Samuel Anbu Selvan Ms. K. Deepthi Nivasini
Associate Professor, Assistant Professor,
Department of Commerce, Department of Commerce,
The American College, Madurai Thiagarajar College, Madurai
anbuselvan73@gmail.com deepthi199223@gmail.com
Abstract
Sustainability is that which meets present needs without compromising the ability of future
generations to meet their own needs. Excelling in production operations, plays a significant role when
firms want to acquire a competitive edge. The present study aims to investigate the structural relationship
between Total Quality Management (TQM) and Corporate Sustainability (CS) and examines how total
quality management practices can facilitate firms to achieve their corporate sustainability objectives.
Additionally, the study focuses on the benefits of implementing total quality management in organisations
and how Total Quality Management (TQM) practices influence the sustainable development of
companies. Technology and innovation has brought about massive competition in the corporate world.
Therefore, this paper aims to throw light on, how total quality management impacts the sustainable
development of business concerns.
Keywords: Total Quality Management (TQM), Sustainability, Triple Bottom Line (TBL)
1. Introduction
Testing the quality of the manufactured goods, necessitated by the fact that, the Japanese manufacturing
industries produced poor quality goods after the Second World War. As such, in the fifties, quality control
became a major concern of many nations. Subsequently, in the 1970’s, the concept of total quality
evolved. Self-assessment methods are being used by organizations to measure their standards and
performance while making an attempt to achieve world class rating. The effectiveness of total quality
management and organisational performance can be measured using self-assessment framework of
quality management. (Z, Aaden 2020)1.
2. Statement of the Problem

Organisations consider incorporating the idea of sustainability in Total Quality Management in order to
sustain their competitive advantage and performance. In addition to the interest of organizational growth,
survival and prosperity, organisations are concerned with not only the present but also the future.
Synergies of Total Quality Management (TQM) and sustainability could be realized in the following
ways. 1) By identifying how total quality management could contribute to sustainability through customer
focus and the economic dimensions of the Triple Bottom Line (TBL). 2) The next one is to see how
sustainability contributes to total quality management by broadening the focus to all dimensions and to
enlarge the focus from customers to stakeholders. 3) The best way would be to focus on synergies and to
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create a balanced Total Quality Management – Sustainable Development system. There is still a risk that
something from the original concept is lost. Total Quality Management could risk losing some of its
ability to increase profits and Sustainable Development could lose some of its focus on environmental and
social issues. The concept of sustainability however remains unclear and is therefore worth exploring
further on how it can be applied in companies practicing total quality management. It is the purpose of
this paper to highlight some of the key issues faced by corporates in attaining sustainable total quality
management.(Mohamed Zairi, 2006)2.
3. Review of Literature
Hacker et al., (1998)3 in their book state that, measuring the performance of an organization through the
assessment of the organization’s vision and mission statements, is the foundation of an effective
sustainable system.
Zairi et al.,(2001)4 in their study concluded that TQM sustainability is largely dependent on the following:
1) A series of transformational change paradigms, through an evolutionary path reflecting a product,
service, customer and market orientations; 2) The existence of a number of critical factors which impinge
greatly on Total Quality Management and the successful implementation of which enables superior
performance; 3) The creation of a culture of continuous improvement, learning and innovation so as to
have a sustainable climate for the growth of businesses; 4) An emphasis on performance measurement
using a balanced perspective.
Garvare et al., (2001)5 in their study define sustainable development as the process that enables to reach a
steady state where both humanity and nature thrive.
Will Kenton, (2020)6 in his article defines Triple Bottom Line (TBL) as the framework or theory that
recommends companies to focus on social and environmental concerns just as they focus on profits. The
triple bottom line aims to measure the financial, social and environmental performance of a company over
time. The Triple Bottom Line consists of three elements: profit, people, and the planet. The theory holds
that if a firm looks at only profits, ignoring both people and the planet, it cannot account for the full cost
of doing business. People + Planet = Social + Environmental Responsibility. According to Triple Bottom
Line theory, companies should be working simultaneously on three bottom lines: 1) Profit- The traditional
measure of corporate profit – Profit and Loss Account. 2)People- Measures how socially responsible an
organization has been throughout its operations. 3)The Planet- Measures how environmentally
responsible a firm has been. Triple Bottom Line reporting can be used as an important tool to support a
firm's sustainability goals.
4. Objectives
1. To study the impact of total quality management on corporate sustainability
2. To analyse the issues faced by companies in achieving corporate sustainability through total
quality management
3. To offer findings, suggestions and conclusion to the study.
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5. Methodology
Secondary data from various sources have been reviewed and conclusions are drawn based on the
analysis of previous studies. Conceptual research approach has been used to develop concepts based on
analyses, understanding and reasoning. The explanatory design is adopted as the paper aims to put
together different ideas or perspectives relating to how total quality management translates to corporate
sustainability.
6. Total Quality Management and Sustainability

Total Quality Management is a quality management system which pursues customer satisfaction through
the continuous improvement of products and processes by the total involvement and dedication of
everyone involved in the process or the product. When applied effectively, Total Quality Management
enables companies to improve their long-term relationships, creating a harmonious team spirit and to
enhance its skills in all spheres of the sector. Total Quality Management encourages the open addressing
of problems and helps achieve the intended project objectives and benefits. The vision for sustainability
of projects should be decided as early as possible as they have a significant impact on the overall project.
Sustainability should be integrated into all the activities within the project process, with close interaction
among all workers.
Principles of Total Quality Management
1. Commitment of Top level management: The top level management is the driving force behind the
implementation of Total Quality Management in the organisation. Total Quality Management starts at the
top with the chief executive and the commitment of the leadership to the Total Quality Management, of
the company goes a long way in motivating employees to deliver quality services exceeding the
expectations of customers. The long term relationship with satisfied customers, becomes an asset to the
organization.
2. Cultural change: Thetotal quality management culture implies the decentralization of responsibility to
the lowest cadre. This makes quality central to every employee in the organisation. Total Quality
Management emphasizes the need for the change from the traditional approach of quality management
which is bureaucratic in nature. The need for cultural change is stressed by the role total quality
management plays in the life of an organisation. Culture influences, what the executive groups attend to,
how they interpret information and their responses that make changes to the external environments.
Culture is helps an organisation to plan and implement its strategy.
3. Total involvement: Empowerment and involvement of employees in the decision making process is
viewed essential for a sustained result. Thus the main aim for the total involvement of employees is to
boost internal and external customer satisfaction by developing a flexible environment which allows for
innovation. The experience and abilities of all the employees are utilized to perform functionslike
information processing, problem solving and decision making.
4. Continuous improvement: Continuous improvement means a commitment to constant examination of
the technical and administrative process in search of better methods. It refers to improving the value in the
eyes of the customer by constant refinement and improvement of products, services and the organisational
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system including the level of planning, decision making and the execution of work by the front line
staff.The principle behind the idea of continuous improvement is that mistakes can be avoided and defects
can be prevented.
5. Training: Training helps in preparing employees towards managing the process of production. Training
equips people with the necessary skills and techniques for quality improvement which in turn helps in
achieving the business objectives.
6. Team work: Team work leads to commitment of the workforce, to the organisational goals and
objectives. A well-structured team will be able to tackle a complex problem, by utilizing the
organisation’s resources, making recommendations for plans to be implemented and boost worker morale
and ownership through participation in problem solving and decision making.
Some other elements of Total Quality Management include: employee involvement, quality assurance,
flexibility, benchmarking and process management.
Culture People Communicatio

n
Systems Consumer Processes
Commitment
The above diagram shows how Total Quality Management focuses on both external as well as internal
factors of an organization in achieving customer satisfaction and corporate sustainability.
Benefits of Total Quality Management
1. Training- Once Total Quality Management implementation starts, employees go through regular
training and certification process.
2. Customer orientation- The quality improvement ultimately targets improving customer satisfaction. For
this purpose, the company conducts surveys and feedback forums for gathering information relating to
customer satisfaction.
3. Involvement of employees–The management/authorities in organisations should ensure that employees
are being rewarded appropriately.
4. Techniques and tools - Use of techniques and tools suitable for the company.
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5. Corporate culture - The corporate culture should be such that it facilitates the employees with the tools
and techniques where the employees can work towards achieving higher quality.
6. Continuous improvement- As long as the organisations practice Total Quality Management there is
continuous improvement. Some other benefits include: customer satisfaction, employee job satisfaction,
productivity, competitive advantage, increase in profitability, decrease in waste and rework and better
coordination of customer focused activities.
7. Findings:
 The total quality management in organisations has an impact on the customer satisfaction
promoting corporate sustainability.
 The total quality management and corporate sustainability concepts are both interrelated
organizational goals.
 Continuous improvement and sustainability is possible through total quality management in
organisations.
 Defects can be minimized by practicing total quality management in companies.
8. Suggestions
 Corporate Sustainability could be attained through regular management of quality in all

departments of an organization.
 Companies should align their environmentally sustainable operations with their quality control
practices.
9. Conclusion
Today organisations aim to remain profitable, despite the risk and challenges that are available in
the business environment. The quality of the output produced by all processes within the business is
significant to ensure that the business survives any kind of business environment, guaranteeing future
profits from the venture. Total Quality Management in organisations help to concentrate on both internal
and external factors of the business environment and promotes corporate sustainability, amidst changing
business environment.
References
[1] Z., Aaden. "Total quality management: A Path to Sustainable Growth and Improvement." IvyPanda, 2 May 2019,
ivypanda.com/essays/total-quality-management-a-path-to-sustainable-growth-and-improvement/. Accessed 24 Feb. 2020.
[2] Zairi, M. with Liburd, I.M. (2001), "TQM Sustainability - A Roadmap for Creating Competitive Advantage", Integrated
Management, Proceedings of the 6th International Conference on ISO 9000 and TQM, University of Paisley, Scotland, 17th -
19th April, Scotland, pp. 452 - 461, Published by Hong Kong Baptist University Press (ISBN 962-86107-2-4).
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[3] Hacker and Brotherton(1998) Balancing Measures: Best Practices in Performance Management, Designing and installing ...
13(3), 113–118.
[4] Garvare, R., & Isaksson, R. (2001). Sustainable development: Extending the scope of business excellence models. Measuring
Business Excellence se-version], 5 (3), 1115.
[5] Mohamed Zairi, Beyond TQM implementation: the new paradigm of TQM sustainability, Journal of Total Quality
Management and Business Excellence, Volume 13, 2002 -Issue 8, Pages 1161-1172, Published online on 28th July 2006.
[6] Will Kenton (2020) https://www.investopedia.com/terms/t/triple-bottom-line.asp
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Studies in Indian Place Names (UGC CARE Journal)

ISSN: 2394-3114 Vol-40, Special Issue-25

The Impact of Total Quality Management on Corporate Sustainability

2. Statement of the Problem

6. Total Quality Management and Sustainability

Culture People Communicatio

Systems Consumer Processes

Benefits of Total Quality Management

 Corporate Sustainability could be attained through regular management of quality in all

[6] Will Kenton (2020) https://www.investopedia.com/terms/t/triple-bottom-line.asp

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